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DATATEC GROUP UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2003 Jens Montanana

DATATEC GROUP UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2003 Jens Montanana. TRADING ENVIRONMENT. Modest recovery so far Broader IT CAPEX planning is starting Significant Rand appreciation Limited opportunities for improving value added services.

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DATATEC GROUP UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2003 Jens Montanana

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  1. DATATEC GROUP UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2003Jens Montanana

  2. TRADING ENVIRONMENT • Modest recovery so far • Broader IT CAPEX planning is starting • Significant Rand appreciation • Limited opportunities for improving value added services

  3. PERFORMANCE HIGHLIGHTS • 10 % improvement in dollar revenues • Break even result despite effects of rapidly appreciating Rand • Westcon - Landis businesses had first month of operating profit (normalised) • Logical – growth in revenues and EBITDA • Mason – yet to recover from end-of-cycle contraction

  4. CONTINUED IMPROVEMENT IN FINANCIAL MANAGEMENT • Group Net cash $100 million • Financing capacity in under utilised facilities • Sale of non-core operations • Affinity Logic – R63 million (shares + loans) • Datanet & WCM - R18 million • Corporate overhead cost reductions • Move to US Dollar stated financials • Adoption of AC 133

  5. $1.1 B $1.0 B $1.0 B 1H 03 2H 03 1H 04 GROUP REVENUES Sequential and comparative improvement

  6. 50% North America Africa+ME 6% 9% Asia 1% South America 34% Europe REVENUES BY REGIONS

  7. $129.4 M $123.3 M $115.1 M 1H 03 2H 03 1H 04 GROSS MARGIN – ONGOING OPERATIONS Sequential and comparative improvement

  8. $18.0 M $10.3 M $2.3 M 1H 03 2H 03 1H 04 EBITDA – ONGOING OPERATIONS

  9. 1.13 0.04 (8.27) 1H 03 1H 04 2H 03 TOTAL HEADLINE EARNINGS PER SHARE US cents

  10. 12.5 (80.4) 1.1 1H 03 1H 04 2H 03 TOTAL HEADLINE EARNINGS PER SHARE SA cents

  11. $ million ASSETS Current Assets Non-current Assets Tangible Fixed Assets (NBV) Intangible Assets (primarily goodwill) Total Assets LIABILITIES & SHAREHOLDER FUNDS Current Liabilities Non-current Liabilities Total Equity Total Liabilities and Shareholder Funds BALANCE SHEET 31-Aug-03 28-Feb-03 782 747 27 31 30 46 64 68 903 892 541 511 12 24 357 350 903 892

  12. GROUP NET CASH Cash position remains strong $116 M $100 M $69 M 1H 03 FY 03 1H 04

  13. SEGMENTAL ANALYSIS Revenue Gross Margin 62% 18% 81% 34% 1% 4% EBITDA Westcon Mason 12% Logical 4% 84%

  14. OUTLOOK • Recovery underway but remains fragile • Improving indicators but sustainability questionable • Equity markets predicting technology rebound

  15. WESTCON GROUP RESULTS FOR THE 6 MONTHS ENDED 31 AUGUST 2003Alan Marc Smith

  16. CONSOLIDATED RESULTS Highlights Operating Results: • Stable revenues – 9% revenue growth over comparable period; 2.3% organic growth • Continued gross margin pressure from largest vendor • Planned SG&A reductions realized. Further re-organization and consolidation planned in US and Europe. Westcon I SG&A expenses down 2.7% on a normalized basis over comparable period • Capital expenditures down $4.0 million over comparable period • U.S. economy still uncertain • Interest rates remain low Financial Position and Cash Flow: • Working capital improvements continue to generate positive cash flows and reduce indebtedness. • Cash flow generation has slowed. Will be difficult to repeat prior period performances • Record August cash balance

  17. CONSOLIDATED RESULTS Highlights Financial Position and Cash Flow (cont): • DSO and inventory turnover consistent; DPO increases • $175M US syndicated working capital facility completed • Westcon UK refinancing completed • Syndicated Pan European refinancing in process • Consolidated net debt maintained below zero (net cash position) Westcon II Subsidiaries: • Gross margin improvement; reduction in operating loss • Continued SG&A reductions realized • Subsidiaries properly capitalized with “push down” of loans • No further cash support provided to subsidiaries. • Norway, Sweden, Denmark, Netherlands, and France financings completed

  18. Represents Westcon II (Landis) Sales FINANCIAL OVERVIEWHistorical Six Month Period Sales – US GAAP(Includes Datatec intercompany revenue) $1,100 $1,000 $880 $900 $842 $807 $800 $700 $600 $1,042 $1,024 $500 $931 $400 $798 $781 $767 $756 $716 $300 $556 $200 $100 $0 Mar-Aug Sep-Feb Mar-Aug Sep-Feb Mar-Aug Sep-Feb Mar-Aug Sep-Feb Mar-Aug 2000 2001 2002 2003 2004

  19. FINANCIAL OVERVIEW Consolidated Sales by Vendor %’s 6 months 6 months 6 months 6 months ended ended ended ended Vendor 2/028/022/038/03 (% of total revenue) Cisco 53.8% 52.5% 50.9% 53.3% Nortel 11.8% 12.4% 10.9% 10.6% Avaya 12.7% 12.0% 11.1% 10.3% Security 9.3% 10.2% 11.4% 11.1% IP Devices 12.4% 12.9% 15.7% 14.7% Total 100.0% 100.0% 100.0% 100.0%

  20. FINANCIAL OVERVIEW Consolidated Sales by Geography 6 months 6 months 6 months 6 months ended ended ended ended Region 2/028/022/038/03 (% of total revenue) Americas 62% 61% 58% 57% Europe 31% 32% 37% 37% Asia Pacific 7% 7% 5% 6% Total 100% 100% 100% 100%

  21. FINANCIAL OVERVIEW Headcount Analysis 2/28/028/31/022/28/038/31/03 Westcon I 922 932 879 836 Westcon II - 536 429 265 Consolidated 922 1,468 1,308 1,101 Revenue per Employee ($000’s) Westcon I $821 $837 $873 $955 Westcon II - 48 177 309 (a) (a) Represents 3.5 months of activity.

  22. FINANCIAL OVERVIEW Consolidated Results of Operations – SA GAAP (US $, in millions) 6 months 6 months 6 months 6 months ended ended ended ended 2/02 8/02 2/03 8/03 • Sales $748$795$831$860 • Gross Profit 71 71 73 76 • Gross Profit % 9.6% 9.0% 8.8% 8.9% • SG&A 44 52 59 58 • SG&A % 5.9% 6.5% 7.1% 6.8% • EBITDA 27 20 14 18 • EBITDA % 3.6% 2.5% 1.7% 2.1% • Dep & Amort 10 10 25 11 • D&A % 1.3% 1.2% 3.0% 1.3% • Interest Exp, Net 8 2 1 1 • Int Exp % 1.0% 0.2% 0.2% 0.1% • Pre-tax Income (Loss) 10 8 (12) 6 • Pre-tax % 1.3% 1.0% (1.5)% 0.7% Note: Excludes Datatec Intercompany transactions

  23. FINANCIAL OVERVIEW Consolidated Results of Operations – Normalized (US $, in millions) 6 months 6 months 6 months 6 months ended ended ended ended 2/02 8/02 2/03 8/03 • Sales $748$795$831$860 • Gross Profit 73 72 77 76 • Gross Profit % 9.8% 9.0% 9.2% 8.9% • SG&A 44 52 59 56 • SG&A % 5.9% 6.5% 7.1% 6.5% • EBITDA 29 20 18 20 • EBITDA % 3.8% 2.5% 2.1% 2.4% • Dep & Amort 10 10 10 11 • D&A % 1.3% 1.2% 1.2% 1.3% • Interest Exp, Net 8 2 1 1 • Int Exp % 1.0% 0.2% 0.2% 0.1% • Pre-tax Income 11 8 6 8 • Pre-tax % 1.5% 1.1% 0.8% 1.0% Note: Excludes Datatec Intercompany transactions

  24. FINANCIAL OVERVIEW Normalized Items • Excludes Lucent inventory reserves of $5.6M, $250K and $3.8M for the six months ended 2/02, 8/02 and 2/03, respectively (COGS) • Excludes $3.9 million UK duty tax refund for the six months ended 2/02 • Excludes Comstor division goodwill write-down of $15 million for the six months ended 2/03 (SG&A) • Excludes US and European restructuring costs of $2.5M for the six months ended 8/03. (COGS & SG&A)

  25. FINANCIAL OVERVIEWConsolidated Balance Sheets - Working Capital – US GAAP (US $, in millions) As of As of As of As of 2/28/02 8/31/02 2/28/03 8/31/03 Accounts Receivable $251 $270 $236 $255 DSO (days) 54 60 51 54 Inventory $179 $183 $171 $175 Inventory Turns 8.5x 8.2x 9.0x 9.0x Accounts Payable $207 $285 $278 $303 DPO (days) 50 70 66 70 Current Ratio 1.5 1.5 1.5 1.5 Note: DSO, DPO, and inventory turns calculated using trailing twelve month amounts.

  26. FINANCIAL OVERVIEW Consolidated Balance Sheets – Capitalization – US GAAP (US $, in millions As of As of As of As of 2/28/02 8/31/02 2/28/03 8/31/03 Cash $97 $111 $141 $133 Working Capital Debt 127 86 72 63 Acquisition Debt 10 - - - Net (Debt) / Cash (63) (1) 34 36 Equity 344 358 261 268 Debt to Capitalization 0.32 0.24 0.29 0.27 Liabilities to TNW 1.68 1.78 1.61 1.68 Note: 2/28/03 and 8/31/03 balance sheets include impact of Comstor division goodwill write-down.

  27. FINANCIAL OVERVIEW Consolidated Cash Flows – US GAAP (US $, in millions) 6 months 6 months 6 months 6 months ended ended ended ended 2/02 8/02 2/03 8/03 Cash generated by (used in) • Operations: • Cash Earnings $17 $13 $4 $13 • Working Capital855940(7) • Total 103 72 44 6 • Investing: • Fixed Assets (5) (7) (5) (3) • Acquisitions (3) (10) (6) (1) • Financing: • WC Line (80) (48) (41) (2) • Acquisition Line (15) (10) - - • (To) from Datatec - 3 8 - Note: Chart assumes no change in cash

  28. FINANCIAL OVERVIEW Net Debt Trend - Feb 2000 to Current

  29. WESTCON I NORMALIZED RESULTS Comparison to Comparable Prior Year Period • Revenues: • Organic revenues up 2.3% compared to comparable prior year period • Growth in IP devices sales volume ($196M vs.$177M) • Gross Margin down from 8.8% to 8.3% • Cisco revenue increases as a percentage of total revenue (54.1% vs. 52.6%) • Cisco margins decline • Less vendor sponsored margin enhancement programs • Price wars continue • Higher IP device product sales somewhat offset margin degradation. (13.4% of total revenue opposed to 12.6% for the comparable period)

  30. WESTCON I NORMALIZED RESULTS Comparison to Comparable Prior Year Period • Selling expenses decline by $2.1 million or 11.8% • Lower communication costs • Increased vendor co-op funding in Westcon division. • General and administrative expenses increase by $845K or 3.0% • Increased bad debt expense in Comstor division • Increased insurance costs. • Reduction in outstanding debt and interest rates significantly lower interest expense

  31. FINANCIAL OVERVIEW Westcon I Results of Operations – SA GAAP (US $, in millions) 6 months 6 months 6 months 6 months ended ended ended ended 2/02 8/02 2/03 8/03 • Sales $748$770$755$778 • Gross Profit 71 69 66 67 • Gross Profit % 9.6% 8.9% 8.7% 8.6% • SG&A 44 45 48 57 • SG&A % 5.9% 5.9% 6.3% 7.3% • EBITDA 27 23 18 10 • EBITDA % 3.6% 3.0% 2.4% 1.3% • Dep & Amort 10 9 25 11 • D&A % 1.3% 1.2% 3.3% 1.4% • Interest Exp, Net 8 1 0 2 • Int Exp % 1.0% 0.2% 0.1% 0.2% • Pre-tax Income (Loss) 10 13 (8) (2) • Pre-tax % 1.3% 1.7% -0.9% -0.3%

  32. FINANCIAL OVERVIEW Westcon I Results of Operations – Normalized (US $, in millions) 6 months 6 months 6 months 6 months ended ended ended ended 2/02 8/02 2/03 8/03 • Sales $748$770$755$778 • Gross Profit 73 69 70 67 • Gross Profit % 9.8% 8.9% 9.2% 8.6% • SG&A 44 45 48 46 • SG&A % 5.9% 5.9% 6.3% 6.0% • EBITDA 29 24 22 21 • EBITDA % 3.8% 3.1% 2.9% 2.7% • Dep & Amort 10 9 10 11 • D&A % 1.3% 1.2% 1.3% 1.4% • Interest Exp, Net 8 1 0 0 • Int Exp % 1.0% 0.2% 0.1% 0.1% • Pre-tax Income 11 13 12 10 • Pre-tax % 1.5% 1.7% 1.5% 1.3%

  33. FINANCIAL OVERVIEW Westcon I Normalized Items • Excludes Lucent inventory reserves of $5.6M, $250K and $3.8M for the six months ended 2/02, 8/02 and 2/03, respectively (COGS). • Excludes $3.9 million UK duty tax refund for the six months ended 2/02. • Excludes Comstor division goodwill write-down of $15 million for the six months ended 2/03 (Dep & Amort). • Excludes US restructuring costs of $311K for the six months ended 8/03. (SG&A) • Excludes impact of capitalization of intercompany debt between Westcon II subsidiaries and Westcon Group for six months ended 8/03 - $10.2 million ($8.1M operating costs, $2.1M interest expense) • Excludes reversal of $2.1M in accrued management fees between Westcon II subsidiaries and Westcon I (Operating costs)

  34. WESTCON II NORMALIZED RESULTS Comparison to Previous Six Month Period • Revenues: • Revenue grew $6.0 million or 7.9% over the six months ended 2/28/03. • Revenue growth driven by increased Cisco and 3Com sales • Gross Margin increases from 9.2% to 11.4% • Increased vendor rebates • Cisco MBO achievement • Lower warehouse expense and professional services staffing vs. prior six month period • Headcount reductions drive SG&A expense down by $1.5 million or 13.0% compared to six months ended 2/28/03.

  35. FINANCIAL OVERVIEW Westcon II Results of Operations – Normalized Results (US $, in millions) 6 months 6 months ended ended 2/03 8/03 • Sales $75.8$81.8 • Gross Profit 7.0 9.3 • Gross Profit % 9.2% 11.4% • SG&A 11.8 10.3 • SG&A % 15.6% 12.6% • EBITDA (6.6) (1.7) • EBITDA % (8.6%) (2.1%) • Dep & Amort 0.3 0.2 • D&A % 0.3% 0.3% • Interest Exp, Net 1.0 0.9 • Int Exp % 1.4% 1.1% • Pre-tax Income (5.3) (1.6) • Pre-tax % (6.9%) (1.9%) Note: Six months ended 8/31/03 exclude exceptional costs of 2,142,803 and impact of intercompany debt capitalization and reversal of accrued management fees.

  36. FINANCIAL OVERVIEW Westcon II Quarterly Results of Operations - Normalized (US $, in millions) FY 03 FY 03 FY 03 FY 03 FY 04 FY 04 Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4 Qtr. 1 Qtr. 2 • Sales $1.0$24.7$34.4$41.5$40.0$42.0 • Gross Profit 0.1 2.8 3.4 3.6 4.4 4.9 • Gross Profit % 6.7% 11.3% 10.0% 8.6% 11.0% 11.7% • SG&A 1.2 5.3 5.6 6.3 5.6 4.7 • SG&A % 125.4% 21.6% 16.3% 15.1 14.1% 11.2% • EBITDA (1.1) (2.7) (2.7) (3.8) (1.7) (0.1) • EBITDA % (119.2%) (10.8%) (8.0%) (9.2%) (4.2%) (0.1%) • Dep & Amort 0.1 0.5 0.1 0.2 0.1 0.1 • D&A % 5.9% 2.1% 0.2% (0.5%) 0.2% 0.3% • Interest Exp, Net 0 0.3 0.5 0.6 0.6 0.3 • Int Exp % 0.0% 1.1% 1.4% 1.3% 1.4% 0.8% • Pre-tax Income (1.2) (3.4) (2.9) (2.3) (1.8) 0.3 • Pre-tax % (125.1%) (13.7%) (7.0%) (5.6%) (4.6%) 0.6% Notes: Q1 and Q2 of FY04 exclude exceptional costs of 900,009 and 1,242,794, respectively. Q2 FY04 normalized to exclude impact of intercompany debt capitalization and reversal of accrued management fees.

  37. STRATEGIC DIRECTION

  38. Software Focus ROI Driven Markets • Routing • Switching • Telco • Transmission Equipment • Mobility • Unified Messaging • CRM • Network Management Hardware Focus Technology Driven Markets

  39. PRODUCT LINE STRATEGY Strategic product solutions leveraging our leading vendors’ strength and assisting our customers to be more successful in the marketplace by focusing on: Convergence Solutions • Secure market position in anticipated of emerging growth • Forge relationships with key emerging vendors Security • Capitalize on growth and strength of this market • Retain and further develop expertise in this area of increasing complexity IP Devices • Add to network infrastructure solution set • Gain additional profitability from main networking sales • Enhance competitiveness in specific sales situations

  40. FUTURE OUTLOOK • Trends show networking and communications market still in an overall “neutral” state with no defined trend on margins • Vendors make quota 1 quarter and fall behind the next and vice versa • WG market share gains 1 quarter are given back the next due to price wars • LAN/WAN market still declining • Large PBX market “soft” • Hybrid/Key systems market very price sensitive and being attacked by “non-traditional” competitors – Panasonic, Hitachi, Siemens • VOIP – growing at a nice rate – projected to be 12% of revenues in FY04, up from 6% • Security – still a strong market. Nokia and Checkpoint, suffering from price attacks and market share losses – Symantec, Netscreen, Watchguard, Network Associates, etc. • IP Devices –revenues from this portfolio now up to 25.8% of sales (including security). Margin is still strong, but off 2-3% from peak.

  41. LOGICAL GROUP RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2003Jens Montanana

  42. HIGHLIGHTS • Challenging trading environment • Demand still subdued (US and UK) • Some evidence of a start of an upturn – product led • 14% growth in revenues • Product sales up • Project based services down • Annuity services up • Australasia operations performing well • Sold loss-making French operation • EBITDA positive, sequential and comparative improvement over last year • Operating costs and working capital well managed

  43. FINANCIAL PERFORMANCE • Revenue and EBITDA improved

  44. FINANCIAL PERFORMANCE Revenue($M - continuing operations) • Strong revenue growth in US and Australasia 100 September 2002 August 2003 80 60 $M 40 20 0 Europe North America South America Australasia

  45. FINANCIAL PERFORMANCE Gross Margin % (continuing operations) • Gross Margin % down to 22.2% (24.4% FY 2003) 45% September 2002 40% August 2003 35% 30% 25% 20% 15% 10% 5% 0% Europe North America South America Australasia Total

  46. FINANCIAL PERFORMANCE Operating Costs ($M - continuing operations) • Operating costs only marginally higher Up 2.4% 40 September 2002 August 2003 30 $M 20 10 0 Europe North America South America Australasia Group/Journals Total

  47. FINANCIAL PERFORMANCE Headcount (continuing operations) • Total headcount reduced by 5% to 1,039 heads 350 September 2002 300 August 2003 250 200 Heads 150 100 50 0 Europe North America South America Australasia Group

  48. FINANCIAL PERFORMANCE EBITDA ($000 - continuing operations) • All operations EBITDA positive

  49. UK Australasia 18% 26% Germany 1% South America 2% USA 53% FINANCIAL PERFORMANCE August 2003 - Regional Contributions Revenue Split The USA continues to contribute majority of Logical’s revenues EBITDA Split Australasia contributed strongly to Group profitability

  50. FINANCIAL PERFORMANCE Revenue Streams • Technology product accounted for 71% of total revenue August 2003 September 2002 Managed Services Managed Services Maintenance 5% 6% Maintenance 10% 11% Prof. Services Prof. Services 16% 12% Product 69% Product 71%

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